Spot rubber regained strength on Monday. RSS-4 improved to ₹168 (167) per kg, according to traders. The grade was quoted firm at ₹167.50 (167) by the Rubber Board.
As per reports, a leading tyre-maker bought sheet rubber up to ₹170 a kg during early trades. More tyre companies are expected to join the buyers’ queue soon and the market is likely to break above that long-term resistance level once again, this week. In futures, the most active March contracts were down 0.01 per cent from Friday’s settlement price to close at ₹168 per kg with a volume of 2 lots on the Multi Commodity Exchange (MCX).
Global outlook
“The outlook on world production during 2022 is subject to downside risk as climate change can impact on supply through loss of tapping days as well as decline in tree yield”, said Jom Jacob, former Senior Economist at the Association of Natural Rubber Producing Countries (ANRPC). “The consumption outlook has also downside risk as the global economic recovery momentum can be hindered by several factors. The escalating Ukraine-Russia conflict and potential economic sanctions by the US and its allies can dampen the global recovery momentum. Global economic recovery is also subject to potential further development of Covid infections and the progress in the vaccination drive”. RSS-3 (spot) slid to ₹171.18 (171.37) per kg at Bangkok. SMR20 dropped to ₹133.35 (133.55) while Latex firmed up to ₹131.83 (133.43) per kg at Kuala Lumpur. The natural rubber contract for the May 2022 delivery was up 0.18 per cent from previous day’s settlement price to close at 13.78 Yuan (₹168.09) per kg with a volume of 264,605 lots in day-time trading on Shanghai Futures Exchange (ShFE). Spot rubber rates (₹/kg) were: RSS-4: 168 (167), RSS-5: 166 (165), ISNR20: 160 (159) and Latex (60% drc): 120.50 (120).